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Making a Watertight Property Investment - Top Tips

Top Tips for a Sound Investment

Check out the population growth in potential target areas. If the population is growing then your property is going to be easier to resell. If it is shrinking, which is the case in some inland villages then it is probably not a good area to buy in because it is unlikely to experience a sudden surge in population for no apparent reason. Young Bulgarians are avoiding village life like the plague.

Is the area you want to buy in attracting new businesses or are they closing down? They don’t need to be massive factories; a village or small town, which has attracted several shops and a couple of bars is quite a thing for rural Bulgaria. Check out the municipality websites – most of them are in English – to get a true picture of what the area has to offer.

 

What level of investment is being spent on the infrastructure? The EU are still pouring money into Bulgaria despite the problems encountered with fraud and evidence of this is visible around most large cities. If you are looking at areas like Plovdiv and Rousse it is worth noting that airports are scheduled to be developed in these areas. This is not a bad thing! On the contrary easier access will attract more people making long term re-sales much easier.

Try to make a rough profile of foreign buyers in your area. There will be little information around on this front, but it is a vital key to determining resale profit. Talk to or email lots of real estate agents to get their take on this. In broad terms, the British bought renovation projects in the country and apartments in the resorts. The Russians only buy in resorts and want front line luxury – this means overlooking the sea or next to the ski lifts with coastal property being the favoured option. Scandinavian buyers want modern, well built property with all mod cons and high style. Look at the growth rates of foreign buyers too and follow those with the largest growth. The domestic market will grow as the economy becomes richer and city apartments are in demand here.

Correlate markets that may be undervalued with their potential to grow. Dobrich is not one of the most beautiful cities in Bulgaria, but it is attracting new developments and its population has grown yet property prices are low. The clever money will focus on areas with good potential for growth rather than on first impressions on your first ever viewing trip.

You may have no intention of renting out your property when you first buy it, but looking into the potential rental market is a sound move. You never know what is around the corner and the next buyer may want to rent out. Speak to rental agents about the best areas to buy in and ask how much money each area commands.

 

Don’t Let Your Heart Rule

So many investors still come over to Bulgaria to buy property with a very flimsy brief and little knowledge of what they really want to buy. Thoughts focus too much on what they want and what they like rather than on practical aspects like what will sell or rent well should they need to claw back cash. Even those who want to make an investment to supplement their pension in future years rarely consider the re-sale potential in 10 years time. There is far too much assumption that all property markets are like the UK – ‘wait ten years and no matter where you bought, prices will have gone up.’ Unfortunately this is not the case here and it is worth bearing in mind that whilst the incentive for each person buying abroad may be different the gauge of a solid investment hardly ever does.